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Saturday, December 18, 2010

RM1b for Teluk Datai Langkawi project

LANGKAWI: State investment arm Khazanah Nasional Bhd, through its investee company, Teluk Datai Resorts Sdn Bhd (TDR), and partners are investing RM1 billion in the Teluk Datai master development plan that will be completed by 2014.

The five-year plan, which will see the expansion and upgrading of TDR's hotel and golf course as well as the construction of new hotels, was launched yesterday by Prime Minister Datuk Seri Najib Razak.

Najib said: "Based on the development plan for Teluk Datai, more jobs will be created for residents.

"This will increase the value of their assets and their quality of life.

Langkawi, with a population of about 99,000, was identified by Dr Mahathir as a tourist destination more than two decades ago.

Najib said the development of Teluk Datai, with its pristine surrounding and beaches, was ideal to boost Langkawi's position as a premier tourist destination.

Under the plan, The Datai Lang-kawi hotel will expand to include 13 one-bedroom pool villas and one two-bedroom pool villa, while The Golf Club, Datai Bay, will be re-developed into an international golf course to host tournaments.

Najib said the construction of the villas was expected to be completed in the first quarter of 2012, while the golf course would be completed in the third quarter of the same year.

Also in the plan are a 300-room five-star resort, which will be jointly developed with Shangri-La Hotels, a six-star hotel and villas for sale.

Najib said the plan would boost leisure and tourist attractions at Teluk Datai, located northwest of Langkawi and facing the Andaman Sea, to strengthen the bay's position as an international tourist destination.

TDR plans to develop only a fifth of 598ha at Teluk Datai, while the rest, comprising 100,000-year-old rainforests, will be untouched.

TDR engaged Camco South East Asia Ltd (Camco SEA), in which Khazanah has a 5.3 per cent stake, to conduct a sustainability scoping study for the project.

Camco SEA, a green energy expert listed on the AIM London stock exchange, will also design a long-term strategy on rainforest conservation as well as explore opportunities for tie-ups with local partners to conserve land.

Khazanah, in July, acquired a 70 per cent stake in TDR, which owns The Datai Langkawi, The Golf Club and the 598ha at Teluk Datai.

The remaining 30 per cent is held by its founder, Tan Sri Razali Rahman, and Datuk Hassan Abas, through Archipelago Hotels (East) Sdn Bhd.

At the launch, TDR signed an agreement with Shangri-La Malaysia to set up a joint venture to develop the five-star resort. TDR will hold a 51 per cent stake in the company while Shangri-La Malaysia will hold the balance. Shangri-La International Hotel Management Ltd will manage the hotel.

Khazanah executive director (investment) Mohd Nadziruddin Mohd Basri said the development would create about 3,000 jobs.

He said the arrival of more tourists would create more jobs and opportunities for residents.

"We are positive about the project. The returns must be attractive for us to attract the private sector."

He said Khazanah was considering funding options for its investment, including equity partnership and bank borrowings.